USDA Rural Development Program Eligibility Requirements

The United States Department of Agriculture has made direct loans available to people and families in rural areas who are in low to very low-income levels. The purpose of these loans is to work alongside the Rural Home Loan Program to ensure that families in rural areas can get loans for affordable living in these areas of lower economic development.
In order to take advantage of one of these loans you must be able to meet the criteria for eligibility. The USDA Rural Home Loan Program requirements are as follows:

USDA Rural Home Loan Program requirements

The borrower must be in a position to afford all of the mortgage payments.

The home being constructed or renovated must be of adequate size for the size of the family. Over-sized homes will not qualify for these loans.
Families applying for the loan must not currently reside in a home that is considered adequate already. This is based on size of family in comparison to the size of the housing.
In order to obtain a loan your income must be less than 80% of the median income for the surrounding area. Below 80% is considered to be “low income,” and below 50% of the median income is considered by the government to be “very low income.” You must be placed into one of these categories to even be considered for one of these loans.
A manufactured home must be placed permanently upon the property that it is built upon.
If you are applying for the loan then you must have an acceptable credit history. The USDA does have certain credit standards for its current and future borrowers.
This program is in place to make sure that people are able to obtain a loan when perhaps they have been turned down elsewhere because of income or down payment requirements. These requirements are more reasonable with the USDA because they offer zero down payment, low interest rates, as well as subsidies.

Application review process

Upon reviewing your application the USDA Rural Development office will give you a decision on the loan within 30 days. If you meet the eligibility requirements then your loan will be approved and your search can begin for a new home, or upon renovations to your current residence. Be sure to look at the USDA Rural Development site for more information on this program and others like it.